As promised, I was able to do some additional and more precise work on the gold mining sector, more specifically, the exchange traded fund GDX.
Based on my technical anlaysis, it’s confirmed that based on the weekly close of July 3, we have an official inverse head and shoulders formation, and more important – a trigger.
The trigger means as long as we stay above the neckline (see video below for detail then we are able to establish a price target and a high degree of certainty that at least we have the direction correct.
The chart may be slightly difficult to read due to the size of the numbers and labels, unless you have a kid around the house to borrow their lasers, you can check out the video where the picture becomes crystal clear.
The gold mining etf is made up of most of the worlds large and mid size mining companies. There will certainly be lucrative swing trades found in many of the gold mining stocks such as Newmont Mining (NEM), Barrick Gold, Goldcorp (GG) and many others.
Members will be receiving these trades as the chart patterns present a risk reward set up in our favor.
For now, be aware of what’s developing in the sector. Not only are we watching the mining stocks, but the precious metal as well.
Enjoy the video: